All Forum Posts by: Nelson Leal

Well, it's been a bit but wrapping things up.  Took 4 weeks for estimated 2 week rehab.  Delayed issues with the contractor but finally got it done, except waiting delivery still of the range.  Listed it Last week and expecting signed contract by tomorrow with what looks to be excellent tenants.  So all in all Signed assignment for purchase, closed, rehab and rented in 6.5 weeks.  Final numbers came out higher than expected but since i did all my research basesd on everything being more expensive than it all worked out.  Below is breakdown:

BRRRR Results will be final after I refi at end of month but plugged in initial locked in quote from lender now just need to negotiate closing costs with title company.

Monthly Income: $1,425.00	Monthly Expenses: $1,172.23	Monthly Cashflow: $252.77	Pro Forma Cap Rate: 6.06%
NOI: $10,607.50	Time to Refinance: 2 Months	Cash on Cash ROI: 36.69%	Purchase Cap Rate: 10.30%

Vacancy:	$78.38	Repairs:	$49.88
CapEx:	$49.88	Insurance:	$100.00
Management:	$71.25	P&I:	$631.19
Property Taxes:	$191.67

Purchase Closing Costs:	$3,605.00
Estimated Repairs:	$10,338.00
Total Project Cost:	$116,943.00
After Repair Value:	$175,000.00

Acquisition:

Down Payment:	$0 ($10750 surplus)
Loan Amount:	$113,750.00
Loan Points/Fees:	$4,823.00
Loan Interest Rate:	14.000%
Monthly Interest:	$1,327.08
Total Cash Needed At Purchase:	$8,016.00

Refinance:

Loan Amount:	$121,000.00
Loan Fees:	$7,500.00
Amortized Over:	30 years
Loan Interest Rate:	4.750%
Monthly P&I:	$631.19
Total Cash Invested:	$8,266.00

Purchase Price:

$103,000.00

All is right in the world.  Good enough that I just signed a contract on another property this weekend, only this time in Cleveland Ohio might give a shot at flipping or maybe just hold as well. 

Thank you all for following, i'll try to do a better job with pics on the next project I have coming up August 1st. 

Sean, as now it seems the special is over what are the normal points charge and do you loan in Ohio?

@Benjamin Swicegood search BP "seller financing" you will find lots of info.  Depending on your area can be difficult but if you find the right deal and seller financing it's a beautiful thing. 

Benjamin Swicegood perhaps I'm reading this wrong but here is my 2 cents. Your home is being rented and cash flowing $500. Why move back in and turn that into an asset pocketing you $500 to a liability costing you $500. Take the $500 a month and pay off your cars. Then when that is done save a while with it. Then you have less debt and money saved 2 things banks like. Of course it's relative to your cost of living and all. When you rent you have the ability to move just about anytime you want. Try that with a home you own and you could lose major $$$ in the process. Here's another idea. Go find a 2nd home that is offering seller finance. You'll pay a bit more in interest rate but much more flexible usually in qualifying. Then take the $500 from your rental to pay off debt. Once that is done you'll qualify for conventional loan. Good luck.

Paint finished up next is flooring.

Just chatted up with the GC today.  Weekend did not go as planned to there are delays.  Completion date pushed back a few days to Sunday.  Can start showing the property Monday, have to wait for the floors to dry and be able to handle foot traffic.  I'm flying out to Texas this Friday to go see the property for the first time so excited to see the house almost done.  Kitchen pics attached of before and repainted stage.  A little teaser for you.......(sorry, cant get the pic to rotate)

Joe Solkiewicz any added details to share?

Sean Richway what is the minimum amount?

@Corey McKinney thanks for the tip.  I've also heard laminate is a nightmare with tenants due to bubbling up when they clean the floors.  I'm not  familiar with laminate, south florida seems to usually be tile or wood I've never come across wood on a property being rented unless higher end we usually just tile everything down here. 

Any other opinions out there to share.  I have time to adjust rehab plans still.  This could be like a audience influenced project as we move forward.  In fact that is an awesome idea, I'm going to try that on my next project.  The property will probably suffer but it will be one hell of a story to tell and experience. 

@Jon Huber please tag me as I will try to make it up there one of these times.  Hopefully tomorrow.